Robbins Arroyo LLP: Shareholder Lawsuit Filed Against Officers and Directors of Akorn, Inc. (AKRX)
SAN DIEGO & LAKE FOREST, Ill.--(BUSINESS WIRE)--Dec 21, 2018--Shareholder rights law firm Robbins Arroyo LLP reminds investors that a shareholder of Akorn, Inc. (NASDAQ: AKRX) has filed a lawsuit against the company’s officers and directors for breaches of fiduciary duty from 2014 through the present. Akorn is a specialty generic pharmaceutical company.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/akorn-inc-dec-2018-2/
Akorn’s FDA Violations Results in Termination of Acquisition and Remediation Costs of $900 Million
According to the complaint, on April 24, 2017, Fresenius SE Co. KGaA (“Fresenius”) agreed to acquire Akorn in a deal valued at $4.3 billion. While conducting due diligence prior to the merger, Fresenius received three letters from whistleblowers alleging that Akorn’s research and development facilities were significantly flawed and incomplete. Fresenius’ subsequent investigation revealed that Akorn’s board members hid the company’s serious violations of U.S. Food and Drug Administration regulations, leading Fresenius to cancel the transaction in April 2018. When Akorn sued Fresenius to close the deal, the court ruled in favor of Fresenius, finding that Akorn “did not have a well-functioning quality system and lacked a meaningful culture of compliance.” As a result, Akorn’s market capitalization plunged from $4.3 billion when the merger was executed to only $720 million, and the company will need to pay an estimated $900 million to remediate its serious regulatory issues.
Akorn Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20181221005512/en/
CONTACT: Leonid Kandinov
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 12/21/2018 02:00 PM/DISC: 12/21/2018 02:01 PM